Updated over 11 years ago on . Most recent reply
REA Claims Great Deal-- thoughts?
This is the sheet provided by the REA on a property that I'm looking at:
Rent 11 Units $106,980.00
Laundery "average $240/month" $2,880.00
Paid Parking $960.00
Total $110,820.00
Property Insurance $2,100.00
Garbage (Waste Management) $2,568.00
Cleaning Service (Simply Green) $2,280.00
Property Tax $11,868.00
Water Bill $2,100.00
Gas $4,740.00
Electric $900.00
Management "See Note below" $1,500.00
Snow Plow $800.00
Grounds Keeping $600.00
Maintance $1,200.00
Total $30,656.00
NOI: (Annual) $80,164.00
Tenants pay rent online. Onsite manager
does not collect rents and is compensated
for showing units, signing leases
and maintaining grounds.
I have read before on BP that you shouldn't trust a REA with their deal analysis because they are trying to sell you something. Any of these numbers that you can definetly assume are wrong? Would it really be as profitable as this REA thinks? The numbers he's claiming are cetainly less than the 50% rule. I have not seen the property inside yet but the grounds are beautifully kept, it is completed updated inside and the pictures look beautiful. It is being sold for $850,000.